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Prizes, Crowdfunding & Equity Crowdfunding Oh My

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Prizes, Crowdfunding & Equity Crowdfunding Oh My

  1. 1. ?Prizes Equity Perks-based Crowdfunding? Crowdfunding ? Government Grants? Banks? Philanthropy/NonProfit Grants? Venture Capital? Employment? 3 MASSIVE FUNDING OPPS IN 3 MINUTES EACH L. THORELL | INNOVATINI.COM
  2. 2. AGENDAThe opportunityHow big it isWhich opportunity best fits who you are.
  3. 3. PRIZES &OPEN CHALLENGES
  4. 4. TYPES OF PRIZES(MCKINSEY’S “AND THE WINNER IS...” REPORT, 2009)
  5. 5. This%isn’t%an%unusual%rBIG PRIZES COME WITH BIG PUBLICITY Ne# Impr recom % Par6 engin %
  6. 6. WHY YOU SHOULD GO FOR IT.
  7. 7. PEOPLE YOU’D NEVERThis%isn’t%an%unusual%result…% SUSPECT SOLVE PROBLEMS Folditgame Discover%the%structure Problem: Discover the %an%enzyme%involved%i structure of an enzyme involved in the Reproduc:on%of%the%% reproduction of the AIDS AIDS%virus% virus. %Participants: Hundreds, but a core 20+ solved Par:cipants:%Hundred %but%a%core%20+%solved Non-experts in biochemistry! % Time to solve: 3 weeks Solved:%3%weeks%
  8. 8. PLACES TO FIND PRIZE CONTESTSMcKinsey’s “The Winner is” ReportChallenge.govPrizes.orgIdea BountyNaming ForceSquad HelpPicky DomainsCrowdspring
  9. 9. NOW OPPORTUNITIES • $250,000 • Get 250 social votes on your business plan to qualify • Deadline: June 30 • $20,000 of five $20K prizes • Best actionable idea for a Facebook platform to deliver a human rights, human development or social good outcome. •Deadline: Aug 15
  10. 10. HOW BIG IS IT?Prizes of >$100K have grown 15x over the past 35 years.McKinsey estimates The Prize Sector is worth $1 Bn - $2 Bn.
  11. 11. PERKS-BASEDCROWDFUNDING
  12. 12. MANY CHOICES...Many%choices…%
  13. 13. ANATOMY OF AKICKSTARTER PROJECT 1 3 2
  14. 14. WHAT MAKES IT KICKASS? • It’s a new, highly traffic social channel • Large bizarre of innovative social cause and innovative projects • Very likely serendipitous 4 encounters • Compelling psychology of “All or None” funding
  15. 15. TACTICAL ADVICE FROM ANEXPERTBrian Meece, CEO ofRocketHub Brian Meece, CEO of RocketHub
  16. 16. BRIAN’S ADVICEStart by winning followers for your project.Shift communications as needed.Use local & regional connections for support.Finish strong. End with a harder sell - “last chance” “If you hit 20-35% of your funding, there’s a 90% chance you’ll reach 100%.”
  17. 17. HOW BIG IS IT?• $1.47 Bn in 2011• 452 crowdfunding platforms Source: Massolution, Crowdsourcing.org 2012
  18. 18. EQUITYCROWDFUNDING
  19. 19. IT’S ILLEGAL TODAY“...you can go to Las Vegas and lose $10,000 at the table inan hour but you don’t have to be an accredited gambler todo that.” Steve Case
  20. 20. TIMELINE1933: Securities Exchange Laws createdMarch 2012 Bipartisan vote by House & SenateApril 5, 2012: Obama signs JOBS ActYet to come: Reg D changes, more rule-makingEquity Crowdfunding ETA: Dec 2012? March 2013?
  21. 21. WHAT ARE THEY WORRIED ABOUT?Scam & Fraud Crowdcube [UK] :Zero scams/ zero fraud. RocketHub: Zero scams/ zero fraudAngelslist.com: Zero scams/ zero fraud Prosper.com: Zero scams/ zero fraud
  22. 22. JOBS ACT- CROWDFUNDING BASICSFunds Seeker must be incorporated.Funds Seeker must use a crowdfunding portal...Investment Cap Max: $10,000 per investorCrowdfunding Cap/Company: $1 M/year Currently, serious paperwork: $100K-$500Krequires CPA-sanctioned financial statements; >$500Krequires full blown audit.Currently, crowd portals not required to supportinteraction/feedback between seekers & investors.
  23. 23. WHY THIS IS EXTREMELY COOL FOR FLORIDA California Florida 1,147 deals 30 deals 2009 Venture Capital $8,800,000,000 $235,061,300“Florida does all year in venture capital what California does in a few days” Robert Trigaux Tampa Bay Times Venture columnist
  24. 24. HOW BIG COULD IT BE? Total U.S. Total Long-Term Savings VC Investment Today of Americans Today - $30 Trillion ($26.2 Bn 2011)If Americans diverted 1% of their long-term savings to [crowdfunding], that sumwould be 10x the total annual VC investment in the U.S.” Amy Cortese, author of Locavesting
  25. 25. SMART THINGS YOU CAN DO NOWDress rehearse on a perks-based crowdfundingplatform - learn the ropes.Read the RocketHub White Paper written for theSEC for a 2012-2014 roadmap.Track the activities of the Crowd Funding ProfessionalAssociation (CFPA)
  26. 26. WHAT’S YOUR STYLE? Perks-based Equity-based Prizes Crowdfunding CrowdfundingSize of Project Short-term Project CompanyMarketing effort It’s done for you. Very high Very high +Financial Mechanistic; readyAnalytical effort Low knowledge; need to engineer it experts Virtuoso in field Full-fledged Hi imaginationPersonality Type or cross-field imaginative, social Highly social hybridizer team Group Type Indie or Solo or group Company, lawyer collaborative indie (& CPA)
  27. 27. It’s the end of the world as we know it, and I feel fine... R.E.M. delicious.com/lthorell Crowdfunding StackLisa Thorell Innovatini. com thorell.lisa@gmail.com @lisat2

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